State-run Shipping Corp of India could launch its follow-on share sale for a 20 per cent equity stake before December, the managing director said on Tuesday.
The largest shipping company in India will publicly offer 10 per cent of government-owned shares and 10 per cent of fresh equity, chairman and managing director S Hajara told Reuters.
The sale is part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor. The Indian government plans to raise US$8.6 billion through stake sales in fiscal year 2011.
'This will happen very soon. It could be earlier than that,' he said when asked if the sale will take place in December.
'But it will definitely be this financial year.'
The firm's board is expected to make a decision on the timing in the next few weeks.
Shipping Corp, which has a market value of US$1.4 billion, has shortlisted SBI Capital, ICICI Securities and IDFC Capital as the book running leader managers for the offering, three sources with direct knowledge of the situation said last month.
Mr Hajara said that some of the funds raised in the share sale would be used to expand its fleet of 74 vessels.
The firm will spend about US$4.3 billion to buy 57 new vessels of which it will get delivery of 27 vessels by the end of fiscal year 2012. Shipping Corp will also soon decide which Indian shipyard to take a 10 to 15 per cent stake in. Candidates have until next month to submit an expression of interest for the outside investment.
The largest shipping company in India will publicly offer 10 per cent of government-owned shares and 10 per cent of fresh equity, chairman and managing director S Hajara told Reuters.
The sale is part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor. The Indian government plans to raise US$8.6 billion through stake sales in fiscal year 2011.
'This will happen very soon. It could be earlier than that,' he said when asked if the sale will take place in December.
'But it will definitely be this financial year.'
The firm's board is expected to make a decision on the timing in the next few weeks.
Shipping Corp, which has a market value of US$1.4 billion, has shortlisted SBI Capital, ICICI Securities and IDFC Capital as the book running leader managers for the offering, three sources with direct knowledge of the situation said last month.
Mr Hajara said that some of the funds raised in the share sale would be used to expand its fleet of 74 vessels.
The firm will spend about US$4.3 billion to buy 57 new vessels of which it will get delivery of 27 vessels by the end of fiscal year 2012. Shipping Corp will also soon decide which Indian shipyard to take a 10 to 15 per cent stake in. Candidates have until next month to submit an expression of interest for the outside investment.